Equal Credit Opportunity Act — Reg B

Equal Credit Opportunity Act – Reg B

Course Description: Equal Credit Opportunity Act (Reg B) teaches students to evaluate an applicant’s creditworthiness within the boundaries of the Act. The course begins by describing the purpose and coverage of the ECOA, and then reviews what a bank and its employees must do regarding the taking and processing of loan applications, including acceptable factors. This course explains the prohibited bases for evaluating an application and required notifications. The course concludes with a discussion of other bank compliance issues, including the requirements for reporting credit information, record keeping, and the consequences of noncompliance.

Audience: Bank personnel involved in the process of gathering information for credit transactions.

Learning Objectives: After completing this course, students will be able to:

Explain the purpose of ECOA and what it covers

Identify the point at which an inquiry turns into an application and what applicant requests are prohibited

Describe what banks must do to comply with ECOA when processing and evaluating credit applications

Identify reporting and record keeping requirements, as well as the consequences of noncompliance